4 Tips for Protecting Your Cryptocurrency Investments

by Anite Allesis

Investing in cryptocurrency has become a very lucrative business. People all around the world found it profitable, whether as the main or additional source of income. Many people got rich, but many lost everything they had. There is always the potential risk, but there is a saying that if you do not risk, you cannot make the profit. Many things you can not affect can go wrong, like the value of the crypto coins that are constantly rising and falling, but what about things you can do to preserve the losing the money you invested? Let’s start from the beginning.

What is cryptocurrency?

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Cryptocurrency is digital money. It has only a digital form. Even though it is virtual, not printed, it becomes very popular all over the world as the means of payment. Regular money slowly but surely becomes replaced by these. It is impossible to say the exact number of various cryptocurrencies, but we will not make a mistake if we say there are thousands of them. Some coins are more popular and profitable than others. Everybody knows that Bitcoin (BTC) is the most valuable and popular one and its value constantly rises from the day it was created. It is a decentralized currency, which means there is no central control authority, but also no servers involved. Many other currencies are worth mentioning, like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), and so on. 

How can I buy it?

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There are many ways how to buy it. It is possible to buy it face-to-face, by using a gift voucher, cryptocurrency exchanges that are becoming very popular and its number constantly grow, or via an investment fund. Any choice you choose will bring you the same opportunities for further trading. Before you start buying, it is necessary to have a so-called wallet. Just as we keep money in our wallet, so this money also has to be kept safe. ATM transaction is very easy, just put your credit card in it and start with the purchase. After you finish, you have to scan your QR code to transfer your digital money into the wallet. 

The exchange office option might be complicated. It has to be controlled and approved by the government. It will take a lot of time for you to go through the bureaucratic procedure before you finish the transaction. Commonly, the exchange office asks you to link to your existing bank account to check your personal information, at the same time depriving the customer of anonymity. 

Also, many platforms are reachable via computers and smartphones which allows people to trade from all around the world.

How can I keep my money safe?

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It is good to know there is a potential risk of losing the investment, not only on the market but by stealing. To prevent the attack from hackers, it is necessary to keep your crypto coins safe. 

Now when we have a crypto wallet, it is inevitable to secure it. How do we do that? We have to know the money is never kept in the wallet, but on the blockchain, a wallet is used as means that opens the block where the cryptocurrencies are being stored in the blockchain. Blockchain is a hardware wallet that keeps our private key. Without it, it is impossible to make any transaction. 

There are two types of wallets – hot and cold. A hot wallet makes a higher risk of hacker attacks due to the fact it is the wallet that demands access via browser. Another type of hot wallet is the Desktop version. We can say it is not reliable having in mind it has an internet connection. A mobile hot wallet is also not recommendable. But, if you have to use it anyway, we advise you not to keep larger amounts on it. 

Hardware cold wallet is one of the best ways to keep your money safe. It is completely reliable and recommendable for higher amounts to keep. Such investment can be expensive, but in comparison what can you lose if you do not have it – it’s nothing. 

How Can I Protect My Investment?

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There are several advice about how to protect your investment:

  1. Ask around about the stock market and try to find the most appropriate one.
  2. Do not invest a large amount in the same shares, try to invest in several different places, your chances to lose everything are lower.
  3. Do not hesitate to invest in hardware to keep your money safe. Very soon you will find it worthy of it.
  4. It is also clever to invest in a Bitcoin Trading Bot. We can say it is a software designed for crypto traders. This unique robot will communicate with financial exchanges for getting and interpreting valid information. In this way, orders can be sold and bought on behalf of a trader. It is important to emphasize it makes analysis and estimation of the price, volume, and other preferences. It is not wrong to say it is your assistant. If you are dealing with Bitcoins, the bot can make your trading very simple. You can read more on consciouslifenews.com. By choosing the right bot, it is possible to access your transaction from MAC, Window, Linux, or any other operating system. It is very simple for usage, bot’s control and settings are kept on USB, connect it to the computer and start with your work. The good thing is it does not require installation. Not every bot is the same, it depends on what exactly you need. It is also practical if you want to trade with other currencies, not only bitcoin. In such a case, it is good to search for a commercial robot applicable to other currencies. Some bots might include notifications and reports to inform you about new happenings and previous transactions. 

Where can I Invest In?

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With bitcoin, it is possible to invest in everything. The stock market is multifarious and every bigger company is included. Selling stocks and trading is a great source of earning for them. Another popular kind of investing in mining. In such investing, patience plays a key role. It is not relevant to expect to earn in a few hours or days. Very often it lasts much longer, but those persistent know it is worth it. In mining, miners play a key role, which is the reason why they are called “bookkeepers”. Their task is to solve complicated cryptographic problems. 

Now when you know basic things about cryptocurrencies, and most important about protecting the same, you can start with earning!

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